A new board will be appointed to Whanganui District Council Holdings Ltd as part of a restructure of the council-controlled organisation (CCO).
The use of an independent body to appoint board members is also part of changes to the Whanganui District Council's governance manual for its CCOs.
Holdings, which is 100 per cent owned by the council, is responsible for GasNet Ltd and the New Zealand International Commercial Pilot Academy and will now also take over the port and airport.
Holdings already had governance over the port and airport but the management will now report direct to the board instead of within the council.
The current board - chairwoman and former mayor Annette Main, Rob Vinsen and Peter Hazledine - will be disestablished when the new board is appointed in January next year.
An independent third party specialising in governance recruitment will be chosen to appoint the board.
Whanganui District Council chief executive Kym Fell said the changes to Holdings meant additional experience and expertise was needed and transparency in appointments was important.
"The new Holdings board will need to be made up of directors with relevant and specific experience to add value to the boardroom table across a variety of sectors," he said.
"This is not a reflection on the good governance we currently enjoy, however, it will provide a transparent appointment and accountability framework based on best practice principles for governance."
Mr Fell said he would support current board members expressing interest in the independent appointment process.
Whanganui mayor Hamish McDouall hoped not all of the experience of the current board would be lost and expected some to stay on.
But he backed the idea of independent appointments.
"Council won't be appointing [board members], it'll be approving recommendations," he said.
"It'll be a very rare situation where somebody recommended by an independent body gets reversed.
"It also dismisses the central claim that it's very much a club - and it's perception only - that appointments are all kind of people known to councillors."
Meanwhile, Holdings' quarry and forestry portfolios will move back to the council's property division.
Whanganui District Council Holdings has been operating since 2002.